Republic of the ENERGY REGULATORY COMMISSION Pasig City

IN THE MATTER OF THE APPLICATION FOR CONFIRMATION AND APPROVAL OF CALCULATIONS OF OVER OR UNDER RECOVERIES IN THE IMPLEMENTATION OF AUTOMATIC COST ADJUSTMENTS AND TRUE- UP MECHANISMS FOR THE PERIOD 2018 TO 2020, PURSUANT TO ERC RESOLUTION NO. 16, SERIES OF 2009 AS AMENDED BY RESOLUTION NO. 21, SERIES OF 2010, AND ERC RESOLUTION 23, SERIES OF 2010

ERC CASE NO. 2021-023 CF

SAMAR I ELECTRIC COOPERATIVE, INC. (SAMELCO I), Applicant. x------x

NOTICE OF VIRTUAL HEARING

TO ALL INTERESTED PARTIES:

Notice is hereby given that on 4 May 2021, I Electric Cooperative, Inc. (SAMELCO I) filed an Application dated 19 April 2021 seeking the Commission’s approval of its calculations of over or under recoveries in the implementation of automatic cost adjustments and true-up mechanisms covering the period of January 2018 to December 2020 and to allow the cooperative to refund the over recoveries or collect the under recoveries, as the case maybe, to or from the customers.

ERC CASE NO. 2021-023 CF NOTICE OF VIRTUAL HEARING/18 June 2021 PAGE 2 of 9

The pertinent allegations of the Application are hereunder quoted as follows:

1. SAMELCO I is a non-stock, non-profit electric cooperative, duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office at Brgy. Carayman, City, Samar;

2. It holds an exclusive franchise issued by the National Electrification Commission, to operate an electric light and power distribution service in the of Calbayog and nine (9) municipalities in the province of Samar, namely: Sta. Margarita, Gandara, San Jorge, , , , Sto. Nino, Almagro and Tagapul-an.

LEGAL BASES FOR THE APPLICATION

3. ERC Resolution No. 16, Series of 2009 as amended by Resolution No. 21, Series of 2010 establishes the procedure for the automatic recovery or refund of pass through costs and the confirmation process that would govern the automatic cost adjustment and true-up mechanisms approved by the Honorable Commission, with the objective of ensuring appropriate recovery of the pass through costs in an efficient manner and to put in place a fair and transparent process for the confirmation of the automatic cost adjustments implemented by Distribution Utilities and the true-up of other pass-through charges, involving Generation Rate, Transmission Rate, System Loss Rate and Lifeline Rate Recovery, as the case may be;

4. On the other hand, ERC Resolution 23, Series of 2010 adopts the rules implementing the discounts to qualified senior citizen end-users and subsidy from subsidizing end-users on electricity consumption;

5. Foregoing resolutions further require the distribution utilities to file their respective consolidated applications once every three (3) years.

6. Hence, the filing of the instant application, covering the period of January 2018 to December 2020.

OVER OR UNDER RECOVERIES OF ALLOWABLE COSTS

7. Applying the formulas provided under Resolution 16, Series of 2009 as amended by Resolution 21, Series of 2010 and Resolution 23, Series of 2010, SAMELCO I made calculations of the over recoveries charged or under- recoveries incurred as against its customers, in the implementation of certain automatic cost adjustments and true-up mechanisms, covering the period January 2018 to December 2020;

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8. The results of its calculations are presented hereunder, as follows:

Main Grid (Over)/Under Recoverable Actual Revenue Particulars Recovery Cost (Php) (Php) (Php) Generation 1,065,557,725.91 1,059,316,114.43 6,241,611.48 Charge Transmission 213,425,918.11 250,837,721.87 (37,411,803.76) Charge Systems Loss 106,444,415.89 116,011,729.79 (9,567,313.90) Charge Discount Subsidy

(PhP) (PhP) Lifeline Subsidy/Discoun 11,841,407.42 11,249,636.17 591,771.25 t Charge Senior Citizen Subsidy/Discoun 184,994.42 162,401.06 22,593.36 t Charge 1,397,454,461.7 1,437,577,603.3 (40,123,141.57 Total 5 2 )

Tagapul-an Recoverable Actual (Over)/Under Particulars Cost (Php) Revenue (Php) Recovery (Php) Generation 8,583,036.15 8,519,015.96 64,020.19 Charge Systems Loss 1,045,784.87 743,328.49 302,456.38 Charge

Total 9,628,821.02 9,262,344.45 366,476.57

Almagro Recoverable Actual (Over)/Under Particulars Cost (Php) Revenue (Php) Recovery (Php) Generation 5,381,426.69 5,342,405.81 39,020.88 Charge Systems Loss 719,976.40 726,150.18 (6,173.78) Charge Total 6,101,403.09 6,068,555.99 32,847.10

Sto. Niño Recoverable Actual (Over)/Under Particulars Cost (Php) Revenue (Php) Recovery (Php) Generation 7,131,627.04 7,085,637.88 45,989.16 Charge ERC CASE NO. 2021-023 CF NOTICE OF VIRTUAL HEARING/18 June 2021 PAGE 4 of 9

Systems Loss 454,456.49 593,778.27 (139,321.78) Charge Total 7,586,083.53 7,679,416.15 (93,332.62)

Camandag Recoverable Actual (Over)/Under Particulars Cost (Php) Revenue (Php) Recovery (Php) Generation 2,598,599.99 2,576,605.03 21,994.96 Charge Systems Loss 153,023.60 162,074.85 (9,051.25) Charge Total 2,751,623.59 2,738,679.88 12,943.71

Summary Computation Recoverable Actual Revenue (Over)/Under Particulars Cost (PhP) (PhP) Recovery (PhP)

Generation 1,089,252,415.78 1,082,839,779.11 6,412,636.67 Charge Transmission 213,425,918.11 250,837,721.87 (37,411,803.76) Charge Systems Loss 108,817,657.25 118,237,061.58 (9,419,404.33) Charge Discount Subsidy

(PhP) (PhP) Lifeline Subsidy/ 11,841,407.42 11,249,636.17 591,771.25 Discount Charge Senior Citizen Subsidy/ 184,994.42 162,401.06 22,593.36 Discount Charge Total 1,423,522,392.98 1,463,326,599.79 (39,804,206.81)

SUPPORTING DATA AND DOCUMENTS

9. In support of the foregoing calculations, SAMELCO I is submitting the following data and documents covering the period January 2018 to December 2020, attached hereto and made integral parts hereof, as follows:

FOLDER ANNEX DESCRIPTION OF DOCUMENTS NO. MARKINGS

Annex A Fully accomplished Supplier and Folder 1 Transmission Data Sheet Per Year Annex B ERC CASE NO. 2021-023 CF NOTICE OF VIRTUAL HEARING/18 June 2021 PAGE 5 of 9

Fully accomplished Statistical Data Sheet Per Year

URR Addendum/DSL Data Per Year Annex C

Annex D Actual Implemented Rates Sheet Per Year

Lifeline Discount Sheet Per Year Annex E

Senior Citizen Discount Sheet Per Year Annex F

Summary of O/U Recoveries Computation Annex G

Proposed Refund/Collect Scheme Annex H Folder 2 SUPPLIER AND TRANSMISSION DATA

Power Bills from Suppliers (Power Bill; Proof Annex I of Payment; Debit or Credit Memo)

Folder 3 STATISTICAL DATA

Annex J Manifestation of No Pilferage Cost Recoveries

Annex K Summary of Implemented Orders/Decisions

Annex L MFSR – Sections B and E

Demand (kW) Sales Summary Report Annex M Folder 4 ACTUAL IMPLEMENTED RATES DATA

Annex N Consumer Bills per Customer Class (Non- Lifeliner)

Consumer Bills per Lifeline Bracket

(Lifeliner) Annex O

Senior Citizen Consumer Bills Annex P Folder 5 OTHER DOCUMENTS

Annex Q Submitted Monthly URR Annex R ERC CASE NO. 2021-023 CF NOTICE OF VIRTUAL HEARING/18 June 2021 PAGE 6 of 9

Submitted Monthly URR Addendum

Annex S Single Line Diagram

Monthly Reports under ERC Resolution No. Annex T 10, Series of 2018

10. Additionally, SAMELCO I is likewise submitting herewith the required electronic files of the Application and supporting data and documents;

11. Further, in compliance with the pre-filing requirements under the ERC Rules of Practice and Procedure, the cooperative is submitting the following documents to form integral parts hereof, as follows:

ANNEX NATURE OF DOCUMENT MARKINGS

Annex U Proof of furnishing copies of the Application to the Offices of and series the Mayor and Sangguniang Panlungsod of the City of Calbayog and Offices of the Governor and Sangguniang Panlalawigan of Samar

Annex V Proof of publication of the Application in a newspaper of and series general within SAMELCO I’s franchise area or where it principally operates

12. Considering foregoing, it is respectfully prayed that applicant’s calculations of over or under recoveries in the implementation of subject automatic cost adjustments and true-up mechanisms be confirmed and approved, and the cooperative be allowed to refund the over recoveries or collect the under recoveries, as the case maybe, to or from its customers.

PRAYER

WHEREFORE, premises considered, applicant SAMELCO I respectfully prays of this Honorable Commission, after due notice and hearing, to confirm and approve the calculations of over or under recoveries in the implementation of subject automatic cost adjustments and true-up mechanisms covering the period of January 2018 to December 2020 made pursuant to ERC Resolution 16, Series of 2009 as amended by Resolution 21, Series of 2010 and ERC Resolution 23, Series of 2011, and allow the cooperative to refund the over recoveries or collect the under recoveries, as the case maybe, to or from its customers, as follows, to wit:

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Proposed Billing (Over)/Under Term of Determinan Rate per Particular Recovery (PhP) Refund t (MFSR Month /Collect 2020) Generation 6,412,636.67 36 months 81,292,851 0.0789 Charge Transmission (37,411,803.76) 60 months 81,292,851 (0.4602) Charge Systems Loss (9,419,404.33) 36 months 81,292,851 (0.1159) Charge Discount Subsidy

(PhP) (PhP) Lifeline Subsidy/ 591,771.25 12 months 81,292,851 0.0874 Discount Charge Senior Citizen Subsidy/ 22,593.36 12 months 81,292,851 0.0033 Discount Charge Total (39,804,206.81) 81,292,851 (0.4065)

Other reliefs, just and equitable in the premises are likewise prayed for.

The Commission hereby sets the instant Application for determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference and presentation of evidence on the following dates and online platform for the conduct thereof, pursuant to Resolution 09, Series 0f 20201, dated 24 September 2020 and Resolution No. 01, Series of 2021, dated 17 December 2020 (ERC Revised Rules of Practice and Procedure)2:

Date Platform Activity Determination of 23 July 2021 compliance with the (Friday) at nine jurisdictional Microsoft Teams o’clock in the requirements and morning (9:00 AM) expository presentation 30 July 2021 Pre-trial Conference (Friday) at nine Microsoft Teams and presentation of o’clock in the evidence morning (9:00 AM)

1 A Resolution Adopting the Guidelines Governing Electronic Applications, Filings and Virtual Hearings Before the Energy Regulatory Commission; 2 A Resolution Adopting the Revised Rules of Practice and Procedure of the Energy Regulatory Commission. ERC CASE NO. 2021-023 CF NOTICE OF VIRTUAL HEARING/18 June 2021 PAGE 8 of 9

Any interested stakeholder may submit its comments and/or clarifications at least one (1) calendar day prior to the scheduled virtual hearing, via electronic mail (e-mail) at [email protected], copy furnish the Legal Service through [email protected]. The Commission shall give priority to the stakeholders who have duly submitted their respective comments and/or clarifications, to discuss the same and propound questions during the course of the expository presentation.

Moreover, any persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission via e-mail at [email protected], copy furnish the Legal Service through [email protected], a verified Petition to Intervene at least five (5) calendar days prior to the date of the initial virtual hearing and subject to the requirements under Rule 9 of the ERC Revised Rules of Practice and Procedure, indicating therein the docket number and title of the case and stating the following:

1) The petitioner’s name, mailing address, and e-mail address;

2) The nature of petitioner’s interest in the subject matter of the proceeding and the way and manner in which such interest is affected by the issues involved in the proceeding; and

3) A statement of the relief desired.

Likewise, all other persons who may want their views known to the Commission with respect to the subject matter of the case may file through e-mail at [email protected], copy furnish the Legal Service through [email protected], their Opposition or Comment thereon at least five (5) calendar days prior to the initial virtual hearing and subject to the requirements under Rule 9 of the ERC Revised Rules of Practice and Procedure. No particular form of Opposition or Comment is required, but the document, letter, or writing should contain the following:

1) The name, mailing address, and e-mail address of such person;

2) A concise statement of the Opposition or Comment; and

3) The grounds relied upon.

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Any of the persons mentioned in the preceding paragraphs may access the copy of the Application on the Commission’s official website at www.erc.gov.ph.

Finally, all interested persons may be allowed to join the scheduled initial virtual hearing by providing the Commission, thru [email protected], with their respective e-mail addresses and indicating therein the case number of the instant Application. The Commission will send the access link/s to the aforementioned hearing platform within five (5) working days prior to the scheduled hearing.

WITNESS, the Honorable Commissioners ALEXIS M. LUMBATAN, CATHERINE P. MACEDA, FLORESINDA G. BALDO-DIGAL and MARKO ROMEO L. FUENTES, Energy Regulatory Commission, this 18th day of June 2021 in Pasig City.

AGNES VST DEVANADERA Chairperson and CEO

LS: MBVM/CLB/MCCG